Dollar makes poor start to 2010

  The official talk around the G7 statement and the G20 meeting generated a great deal of needless noise in the foreign exchange room. It is almost like a librarian yelling "Quiet".   It may be more disruptive than the initial noise.   With the meetings out of the way, we expect the official jawboning about the currency market to die down.  Of course, there is a chronic low level murmur of economic commentary that may have broad implications for foreign exchange rates.    

The dollar slid against the euro on Monday, but edged up against the yen in cautious trading before key economic data, and amid fears that the global economic recovery may be losing steam, analysts said.In late morning trading here, the European single currency firmed to 1.3067 dollars from 1.3047 dollars in New York late on Friday.Against the Japanese currency, the dollar rose to 86.85 yen, up from 86.48, after earlier topping 87 yen in Asian trade.

The yen slid against the dollar on Wednesday as Japan's finance minister stepped down for health reasons, while the euro edged higher despite stubborn worries over debt-ridden Greece, analysts said.In London morning deals, the dollar increased to 92.39 yen from 91.70 yen in New York late on Tuesday.The European single currency firmed to 1.4373 dollars from 1.4367 dollars on Tuesday.Japan's Prime Minister Yukio Hatoyama said Wednesday he had picked his deputy Naoto Kan as finance minister, replacing 77-year-old Hirohisa Fujii who is stepping down for health reasons.

European stocks steadied Tuesday but sentiment remained fragile after Moody's cut ratings on six European nations overnight and placed three others, including France and Britain, on negative outlook due to the eurozone crisis.London's FTSE 100 rose 0.10 percent to 5,911.52 points in late morning trade, clawing back earlier losses. Frankfurt's DAX 30 added 0.36 percent to 6,762.55 points and the Paris CAC 40 firmed 0.20 percent to 3,391.28 points.In foreign exchange deals, the European single currency firmed to $1.3194 from $1.3191 late on Monday in New York.

The euro dipped against its main rivals on Monday as data showed the rate of economic recovery easing across the eurozone. Elsewhere, the yen rose as Japanese leaders avoided measures to tame the currency's ascent.The Australian dollar meanwhile recovered after falling sharply in early Asian trade on political uncertainty after Australia's weekend general election failed to produce a clear winner.In morning London trade, the European single currency slid to 1.2712 dollars from 1.2714 dollars in New York late on Friday.

The euro sank under 1.30 dollars and bond rates rose on Tuesday when the eurozone debt crisis raged on unabated by Ireland's bailout analysts said, but stock markets mostly rose.In mid-morning London trading, the euro slid to 1.2999 dollars -- the lowest point since September 16. It later stood at 1.3000 dollars, which compared with 1.3121 dollars late in New York on Monday.The dollar fell to 83.98 yen from 84.25 yen on Monday.Gold, seen as a safe haven investment in troubled times, jumped twenty dollars to 1,376.30 dollars an ounce from 1,357 dollars on Monday.

The euro sank under 1.30 dollars and bond rates rose on Tuesday when the eurozone debt crisis raged on unabated by Ireland's bailout analysts said, but stock markets mostly rose.In mid-morning London trading, the euro slid to 1.2999 dollars -- the lowest point since September 16. It later stood at 1.3000 dollars, which compared with 1.3121 dollars late in New York on Monday.The dollar fell to 83.98 yen from 84.25 yen on Monday.Gold, seen as a safe haven investment in troubled times, jumped twenty dollars to 1,376.30 dollars an ounce from 1,357 dollars on Monday.

The euro rose against the dollar on Thursday following strong eurozone growth data and ahead of key monetary policy announcements from the European Central Bank and keenly-awaited US jobs data.In morning London trade, the European single currency climbed to 1.2819 dollars from 1.2807 dollars late in New York on Wednesday.Against the Japanese currency, the dollar dropped to 84.08 yen from 84.42 yen on Wednesday.